Building Economic Dynamism in South Africa

The imperative of Attracting Foreign Direct Investment to South Africa

The release of South Africa’s negative GDP growth data earlier this year and news of a technical recession was a shock. This requires an urgent taking stock of the strategic priorities of our government to put in place and implement the correct policies needed to drive economic growth.

Key points

  • The key to building economic dynamism at this juncture in South Africa lies in investment and the intellectual property that comes with it.
  • South Africa’s investment level is simply too low for what the country needs.
  • Increasing the quantity of capital is only one side of the coin, however, the quality of capital has to improve as well.
  • FDI is particularly impactful because it usually comes with a lot of inbound transfer of knowhow and skills.
  • Attracting more FDI must be a top strategic priority for President  Ramaphosa.
  • To the extent that investment can be channeled to target business start-ups and small entrepreneurs, the impact on building economic dynamism would be even more pronounced.


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